it is 5:00 a.m. here at cnbc global headquarters. here is the "five@5. back in action futures are pointing to more pressure at the open china cutting the benchmark rate to keep the recovery a afloat and trimming in china, but bullish in japan warren buffett on the trading firms in china and the c-suite shakeup in

alibaba. and live at the paris air show where airbus inked the biggest order in history it is tuesday, june 20th, 2023 you are watching "worldwide exchange" here on cnbc good morning welcome to "worldwide exchange." i'm frank holland. thank you for starting your day with us. let's kickoff the day with the stock futures. s&p and nasdaq coming off the first losing session in six. the nasdaq is the hardest hit. the nasdaq would open 125 points lower if it were to open now we havhave a few hours before t opening bell we begin with the benchmark 10-year treasury at 3.78 the same level we have seen the last week or so. an elevated yield on the 2-year

treasury at 4.72 something we continue to watch looking at energy, specifically oil. the wti is back above $70 a barrel $71.65 a move to the upside. brent crude at $76.65. natural gas is the biggest mover up 1.25% the crypto market. bitcoin and ethereum moving up bitcoin up .50% and ethereum up .25%. and now to china cutting the key lending benchmark rate for the first time since august of 2022 to boost the recovery this comes as goldman sachs is the first to cut the outlook for china. now 5.4% for 2023. previously it was 6% eunice yoon is joining us with

more from beijing. eu eunice >> reporter: thank you, frank. a widely expected move not as aggressive as some had hoped. the five-year benchmark lpr, which is the benchmark for mortgages was cut by 10 basis points rather than 15 basis points that disappointed the market and fed into a concern that the authorities here, although increasingly concerned, as they indicated at a meeting last friday about the economy, they are not really willing to shell out or flush out any detail for more grand stimulus plans. goldman sachs downgraded outlook for china on concerns of the limited stimulus today, hsbc cut as well going from 6.3% for 2023 to 5.3%

it cited property slump and the low business and consumer confidence in the country. that joins other wall street banks that cut their forecast for china after the may data really disappointed and worried people that the economy is just being hit by so much pessimism this is bank of american and jpmorgan chase and ubs frank. >> eunice, this easing by the pboc comes after the meeting with president xi. u.s. tensions are weighing on the chinese growth are we seeing easing with the tensions as well >> reporter: i think there is some easing with blinken's trip. it has set the stage for a rep reprieve, but how long is up in the air. what was interesting about secretary of state blinken's visit here is after two days of meetings with the chinese officials, he ended up speaking

to president xi jinping himself. a 35-minute one-on-one meeting both sides, according to the readout from the u.s. and china, had agreed it was a time to stabilize the relations which blinken told reporters was at a v very, very low point because of that, this is easing tensions the press today has all been about this is going to be a positive step for both countries. the foreign ministry has been quoting president xi saying he was pleased there was some progress made on specific issues there was no detail on what the specific issues were the ministry did say china was very much willing to work on flights and improving the flights with the u.s. and china and also secretary blinken said there was a discussion about a

working group to stop fentanyl ingredients from heading to the united states. smaller or lower hanging fruit issues addressed still not the structure issues that need to be addressed. secretary blinken said this paves the way for other officials to visit china as well you know, the treasury secretary and commerce secretary they would be interested in coming here in the coming weeks >> the consensus is we need to see de-risking, not de-coupling. eunice yoon, thank you. and now looking to restore ties with europe the key premier making his way to berlin today. our julianna tatelbaum is joining from us london with more on this story. julianna >> frank, good morning this is certainly a big story i

germany. olof scholz is hosting the premier li in berlin this comes ahead of the consultations and it is the latest bid in berlin to ease tensions to relaunch the talks after the three-year hiatus during the pandemic. scholz said germany must de-risk, but not de-couple the normalization of relations would be beneficial for all g7 economies. the chinese premier is set to meet with executives including the ceos of mercedes to discuss technology cooperation amid german cars in china frank. >> julianna tatelbaum, thank you. let's stick with germany and get a check of the corporate stories with silvana henao silvana, good morning. >> frank, good morning

intel will spend more than $33 billion to develop two new chip factories in germany as part of the larger european expansion. olof scholz calls this the biggest foreign investment in germany ever berlin is agreeing to subsidies worth north of $10 billion of the that is more than the $7 billion initially reported in the surprise move, alibaba is replacing daniel zhang with eddie wu. zhang will leave role as chairman of the board and s succeeded by jack ma and joe si. this comes after the restructuring to boost growth at the individual divisions adobe's $20 billion deal for

figma is under the microscope in europe the tie-up is set to face an investigation into the deal that could threaten competition in the digital design market. you can hear more about this probe and more tomorrow when we speak with the head of the eu task force at 5:15conversation a lot of people think the eu is ahead of the u.s silvana, thank you. more to come here on "worldwide exchange," including the one word investors have to know today first, despite the down day on friday, stocks are doing something on friday for the first time since 1997. it's a good thing. and the exclusive. the one-on-one with the coo of lockheed martin. and we have one even

tremendous -- even tr - entrepreneur paving the way for others more still ahead on "worldwide exchange." ♪♪ at morgan stanley, old school hard work meets bold new thinking. ♪♪ partnering to unlock new ideas, to create new legacies, to transform a company, industry, economy, generation. because grit and vision working in lockstep

puts you on the path to your full potential. old school grit. new world ideas. morgan stanley.

welcome back to "worldwide exchange." investors picking off the holiday short trading week with futures in the red nasdaq down .50% the s&p has been on a tear entering bull market territory

this month and notching the best start to the year since 1997 according to apollo global management, the easing is a driver this chart shows the close relationship between qe and the s&p. the high relationship with the fed net qe and s&p suggests that fed liquidity is a driver of the stock market here to discuss is ben emons at new edge wealth. ben, great to see you. >> good morning, frank great to be back >> a hawkish fed could lead to a downturn in stocks we saw a down day on friday. futures are under pressure this morning. do you think we are starting to see the impact of the hawkish fed? >> to an extent, frank you could argue you could blow off the top, if you will you have to stretch the stage here with the technology which

is overbought. maybe the liquidity and you had a good environment of liquidity of thliquidity. more than anybody thought. that continues to build up with the federal reserve being hawkish leading up to qt there is an liquidity environment that has driven it on the other hand, the economy surprises us with resiliency that is the biggest driver in the liquidity market unless we see a bad print moving through on the jobs in the next two weeks or other data, i think it will be topping out in the markets. >> you put out a note that between july and september, the fed will do a skip, hop and a

pause. what does that mean for stocks in that time and what stocks have the biggest negative impact in the scenario you are laying out? >> the skip, hop, pause is the fact that the fed indicated to stay on hold for the meeting and assess the next meeting. that means probably july will be a hike it will be data dependent. if you do get to a pause, it will be more of a broadening of the rally. other sectors are under valued to tech and could out perform like energy which lacked it is a part of the economy which has lacked than the liquidity argument on the other hand, you have digital technology which has run up too much. too much of the a.i. drive behind it. overbought conditions. >> that's the argument all day everybody is trying to figure that out i'm sorry to cut you off

china recovery we showed a short time ago with citi cutting the forecast and goldman sachs cutting the forecast for china the fed getting hawkish. china going into easing to boost the economy. does that change your investment thesis with the slower recovery in china and china making big moves to boost things over there? >> there are phases of liquidity injection which is a positive for the emerging markets it has been seen as an idea that you don't really get to a growth rate in china that is lower than the forecast is showing. the target of 5.5% the slowdown is more pronounced there is a negative impact on the global economy otherwise, the liquidity injection is sure to be positive >> asian equities are jumping right now. before we let you go, what

sector is negatively impacted if china has the slow recovery? >> trade with the u.s. and china is the driver of the economic growth of both countries blinken being out there and discussing this with china and having a dialogue is a good step i think the slowdown with the h manufacturing sector is impacting our sector >> ben emons, thank you. ahead on "worldwide exchange," a bullish bet on japan as warren buffett boosts adg fis.a half doze japanese trinrm we have all of the details when "worldwide exchange" returns stay with us

want to stop lower body pain before it starts? there's a dr. scholl's for that. new dr. scholl's prevent pain insoles are the only ones clinically proven to prevent pain from muscle-induced joint stiffness and strain. so you can stay pain free. what if we live to 100. i don't want to outlive our money. i keep eating all these chia seeds. i could live to be 100. we work with empower, even if we do live to 100 we don't have to worry. eh, not worried. take control of your financial future to empower what's next. this is ge aerospace, advancing flight for future generations.

♪ welcome to a new era of flight.

welcome back to "worldwide exchange." cnbc released the black business relationship survey on juneteenth in the survey, 75% of the executives in the top business leaders in america say the organization is making a positive change with hiring and retention and support of black and diverse employees since the killing of george floyd in the summer of 2020 this survey was taken from companies of 10,000 employees or more there is a consensus progress has been made.

black employees were under represented in upper management and 21% said they do not have any black represent sendation ie leadership team. many said they did not prioritize hiring black employees at the top levels. however, more than half said finding black talent for in internships is a priority. if you want to see the full story, go to cnbc.com. let's talk about this with a black leader in corporate america. phyllis new thehouse is the firt black woman listed a spac on the new york stock exchange. phyllis, good morning. >> good morning, frank thank you for having me. >> great to have you here. you heard some of the results from the survey we did with the

black business leader survey 7 75% say the climate has got even better for black employees and managers since george floyd. do you agree >> i agree with it i say that as a successful entrepreneur black female. i understand there are challenges that entrepreneurs face with the economic climate and the headwinds that entrepreneurs have to navigate with inflation and interest rates and the plunge that has happened with venture capital funding and there are many more challenges however, i believe the challenges can present opportunities to entrepreneurs willing to adapt and innovate. the reason i say that is because right after covid, you had a lot of entrepreneurs who derthrived during that time, but they were willing to pivot in the

industry. >> you are in technology we have seen a big boom in technology this year most of it caused by a.i it also spread to cloud computing and enterprise software give us a sense of what it is like to be an entrepreneur like yourself since the collapse of silicon valley bank. have you seen the signs of the credit crunch? >> absolutely. one with of the things i have seen, especially with women, because of the lack of funding and lack of opportunities women had, especially women of color getting funding, we have seen that particular market just really stressed. what i mean by that is when you look at the number of women of color that get funding, that number has decreased since inflation and interest rates and also we are looking at alternative ways to get funding.

what i mean by alternative ways, you look at women entrepreneurs fund other women businesses. this is a great market for investing. investing back into other women. especially when you look at the tech space with a.i. and you look at the number of women of color in the a.i. and cybersecurity space. we had 43% increase in the last two years. >> big jump there. you are putting your money where your mouth is. you are putting money into shoulder up. you support female entrepreneurs with funding i want to talk about your company. how have you seen your company impacted in recent months and not only the credit crunch, but fears of recession and rising rates? how do you thatnavigate that? >> i would say fortunately i'm

in a space where cybersecurity is a business where you either are a company that has been hacked before or a company on the radar. so we had tremendous growth in the industry as a whole in cyber. i will say that the challenges that we face in the industry is talent we look at the talent in the market and covid had a big impact on how we recruit today and how we are scaling out talent pool. one of the things we are looking for universities and minority students to into the industry and space and get them exposure to the space early on. i will tell you that we are partnering with hbcus and get the exposure from high school to

know the opportunities right out of college we would say our biggest challenge has been where do we go for talent today when the market which is competitive in the space. >> phyllis, great to have you here thank you for your service to the military and to help diverse female entrepreneurs. >> thank you, frank. time for the news alert. several reports say carlos ghosn is suing for $1 billion over the firing and arrest over the misconduct in 2018 the suit seeks $1 the billion for the damage to the finances and reputation ghosn denied the charges in 2019 when he fled to lennon. let's go to philip mena with the latest headlines. >> looking to avoid another

tragedy. a submersible and five people on board are still lost in the ocean. the sub is owned by oceangate which offers tourist trips for $250,000 the sub was last heard sunday morning and has enough oxygen for 96 hours. another tornado touched down in mississippi last night. the small town of moss point has continue a direct hit. no reports of serious injuries, but less than 24 hours earlier, someone was killed by the tornado in mississippi. an on-stage shock for bebe rexha after the pop star was hit by a cell phone that somebody threw from the audience. she ended the showand was take to the hospital. officers say a 27-year-old man from new jersey was arrested and charged with assault over the incident

n frank, back to you. >> phifphillip, thank you still ahead, why disney's pixar may be losing its magic and what could be a new head ike f -- headache for ceo bob iger. more on that after the break the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪ ♪ i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this.

i'm so... ...glad we did this. [kid plays drums] life is for living. let's partner for all of it. i'm so glad we did this. edward jones as a business owner, your bottom line i'm so glad we did this. is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network, with no line activation fees or term contracts... saving you up to 75% a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities™.

it is 5:30 a.m. in the new york city area we are just getting started here

on """worldwide exchange. on wall street, the first down day in six and now traders turning attention back to the fed. and moments away from the cnbc exclusive with the coo of lockheed martin live from the pa paris air show it is tuesday, june 20th, 2023 you are watching "worldwide exchange" here on cnbc welcome back to "worldwide exchange." i'm frank holland. thank you for starting your day with us. let's pick up a check of the stock futures. you see futures are in the red across the board after the markets came off the first down day in six on friday we are seeing the dow opening up 130 points lower again the nasdaq down .50% right now we are looking at the bond

market we start with the yield on the 10-year treasury at 3.79 pretty much in the same area for the last week or so. elevated yield on the 2-year treasury we are looking at the energy markets, specifically oil. upside moves with oil. wti crude at $72 a barrel. brent crude up this morning 1.25%. $77 a barrel natural gas up 2%. time for a check on the top corporate stories with silvana henao. silvana. >> frank, good morning berkshire is raising bets on japan. warren buffett is boosting trading in five japanese companies. mitsubishi and mitsui and itochu and marubeni and sumitomo are

all above 5% that is over any stocks it holds outside of the united states and softbank is in position to win the a.i. race thanks to the billions of dollars in tech investment the softbank founder making the appearance at the shareholder meeting. softbank is not deterred by short-term losses and we will rule the world in the end. a pair of movies from two of hollywood's biggest studios failed to spark interest over the four-day holiday weekend "the flash" from dc universe took in $64 million in the u.s. and canada the film cost $200 million to make "elemental" made an estimated $33.3 tmillion domestically

the worst opening in pixar history. i wait for the movies to come up on streaming service >> you don't go to the movies? >> not really. >> i saw "the flash" over the weekend. >> that would be a good one to see. i'll still watch at home >> in the theater for me silvana, thank you. turning attention now to the paris air show in full swing with big commercial aircraft orders front and center this morning. airbus with the biggest aircraft order in history to sell 500 planes to indigo which would double the carrier fleet shares up .50% this morning. on top of mind for the industry is the trillions of dollars in global military spending with that, let's go to phil lebeau joining me live from the paris air show with a special guest. phil >> reporter: thank you, frank. frank st. john for lockheed martin we were talking about the

showing about defense and military spending as it is about commercial aviation. give me a sense from your perspective. the growth in defense spending how far out in the future do you think the growth continues >> phil, good morning. great to be here today at the paris air show i would say what we have seen, especially in the last 16 months, since the invasion of ukraine, is a steady increase of demand not only here in europe, but also around the world. we are starting to see contracts come in now that are going to see us ramping up production rates over the next two to three years across the portfolio we anticipate that maintaining for five years to come after that >> reporter: you know the questions yesterday were about the f/16 and whether or not the nato allies will said f/16s to ukraine and ukraine will have to train pilots

where does lockheed sit with the framework of assists ukraine with pilot training if that is, in fact, what a number of countries do >> right the issues of third party transfer of f/16s and training pilots and sustainment are worked out with the u.s. government and government of ukraine and the countries that would be donating the aircraft once those requirements are defined, lockheed martin stands ready to modify aircraft and provide trainings solutions as we have for 16 other nations and provide sustainment of the platforms and as necessary, build new f/16s to back fill those donated. >> reporter: you mentioned the production rates and how it is increasing you are right now with the joint strike fighter where the next tronche is ready to be delivered. you don't believe the capabilities are up to your standards yet.

how much does that pinch the cash flow near term for you? >> phil, f/35 is the dominant fighter. 17 countries and growing we are delivering the lot aircraft those will deliver out the middle of this year. the tr-3 is in flight testing. that will add more processing and memory and display ability for future mission commitment to allow the f/35 to peace the threat into the next decade. that flight testing willwrap u the end of the year and we will deliver those aircraft to the u.s. as well as allies we are ramping up to a peak rate of 156 aircraft a year over the two-year span, we will see pretty much in line with predictions relative to revenue and cash flow. >> reporter: quickly, production and manpower and sourcing the

supply chain is it improving? >> one lesson we learned since the pandemic and also exacerbated by the last 16 months is we have a relatively fragile industrial base. we spent the last decade making that efficient as possible we have alternate sources and becoming more resilient and agile. the supply chain is ramping up to meet the demand of the future we are very happy to be here at the show and talking to the international suppliers that are part of the more resilient base going forward. >> reporter: i am rmprovimprovig >> yes, sir. >> reporter: frank st. john. thank you. frank, back to you >> phil, thank you very much for that interview coming up on "worldwide exchange," china revealing a third wave of economic support as the post-covid recovery struggles to maintain most money

t -- maintaining momentum is this moving the needle? we will ask our investor coming up after the break

power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. e*trade from morgan stanley. power e*trade's easy-to-use tools make complex trading less complicated. custom scans help you find new trading opportunities, while an earnings tool helps you plan your trades and stay on top of the market. e*trade from morgan stanley.

welcome back to ""worldwide exchange." let's get the latest on the trading day in europe. first, we are looking at futures. they are in the red all morning. the dow is down 125. nasdaq is down .50%. something to watch as we go into

the beginning of the trading day. the markets are coming off the first down day in six on friday. now over to julianna tatelbaum actually, we will turn it over to the morning call sheet. let's check the morning upgrades and downgrades by firms you know and stocks you own morgan stanley moving from overweight to equal weight for u.s. foods new management thinking and performance and a more favorable balance sheet. citi upgrading phillip morris with a price target saying investors are under valuing the smoke-free segment shares of philip morris up 1.5%. and morgan stanley upgrading baidu with the rating and new $190 price target. shares are flat in the u.s.

early this morning. and a key lending rate to shore up the recovery. the yuan is weakening against the dollar on the falling stock price. and the hang seng is dropping 4% overnight. this is as citi and goldman sachs join a growing number of banks cutting the forecast for gdp. china is on the brink of the confidence trap after the boost of the covid reopening is fading let's get more from katrina eli. >> thanks for having me. >> let's talk about the easing it is targeted with the goal of stimulating housing and spending how effective is this in the short-term what comes next? >> that's a good question. we have seen almost a way of

modest and honest monetary stimulus unleashed we saw today that the prime rate was reduced. that will not change the status quo that the domestic demand is roaring back over the pol policymakers would have liked when the china government abandoned the zero covid policy. we saw that spending and investing, but that has not taken place. now policymakers need to release targeted stimulus to prevent that sentiment that seems to be gaining traction from taking hold further >> you mentioned the consumer in china to spend at a rapid rate why haven't we seen it what is going on that people don't want to spend in china

>> it comes down to sentiment. i think the chinese consumer was really burned by that ongoing zero covid policy. now it is taking a little bit more help and hand holding from the government to get spending on services. we expect there will be more support from the fiscal point of view to help them get out and spend again. >> speaking of sentiment citi downgrade for chinese gdp and goldman doing the same consensus. .50% downgrade with gdp forecast how much is slow covid recovery and how much is other factors? china is a big prior supplier te countries around the world >> what we saw with the abandonment of zero covid policy, there was a euphoric

situation which was not sustainable. expectations are coming back to reality. maintained gdp growth forecast for the year at 5.4% which is now consensus. we were bearish relative to consensus. i think we are seeing the stimulus coming through and we should see demand stabilize. that export channel will remain weak >> let's go back to the u.s. as we continue to see the slow recovery in china with the easing what sectors do you see the most impacted negatively? >> that's a good question. it remains to be seen from that weak chinese demand. i think that is a new important channel of impact. there is where the two-way trade with the u.s. and china does happen that's going to be an important

factor to watch. >> katrina ell, thank you for being here now turning back to the check of the trade in europe and headlines dominating the conversation on trading desks around the world julianna tatelbaum is standing by with the global briefing. julianna >> frank, good morning thank you for sticking with us in the overnight trade, we saw a pull back in the chinese market on mainland china with the shanghai pulling back 0.5% hang seng is down 1.5% china's support outlook firmly in focus with the economists thinking the recent cuts by pboc is part of the down sentiment. nikkei is ending 2.6 points higher as for europe, the majority of the region is trading lower. the dax is down .60%

let's look closer at the losses from the sector perspective. chemicals under performing down 1.85%. this is after a profit warning from lanxess a profit warning issued to the market shares down 16%. second quarter and full year estimates below markets expectations on the back of weak demand and continued customer de-stocking effect in the electronics sector and stable consumer related products as well on the down side we have one bright spot is sanofi up 2.8%. sanofi says the chamber has ruled in the favor and rejected claims by the ongoing lawsuit over zantac. something we covered for months. the decision is final and cannot

be appealed according to sanofi. a bright spot in the downbeat day to trade frank. >> julianna tatelbaum, thank you. ahead here on "worldwide exchange," the one word that every investor needs to know today and why my next guest is putting intel on his spphoing list we'll be back after this break ♪ ♪ searching lower prices, ♪ ♪ and brands you love on the shelves. ♪ behind the counter, or in the aisles, healthier's better when it happens together. cvs pharmacy. healthier happens together. what if buildings could tell you how they could be more efficient? i'm listening. well, with ibm, you can use software to help you connect and analyze data— from hvacs to elevators to lights. what if we use ai-driven insights to pinpoint inefficiency? yep. and act on it. saving energy, money... ... and emissions. yup. that's a big one. now you've built something better for everyone. that's the sustainability solution ibm

and a global real estate company created. what will you create? ibm. let's create. ♪ ♪ every day, businesses everywhere are asking. is it possible? with comcast business...it is. is it possible to use predictive monitoring to address operations issues? we can help with that. can we provide health care virtually anywhere? we can help with that, too. is it possible to survey foot traffic across all of our locations? yeah! absolutely. with global secure networking from comcast business. it's not just possible. it's happening. ♪ old school wisdom, with a passion for what's possible. that's what you get from the morgan stanley client experience.

you get listening more than talking, and a personalized plan built on insights and innovative technology. you get grit, vision, and the creativity to guide you through a changing world. ♪ welcome back to "worldwide exchange." time for the wex wrap-up alibaba is replacing daniel zhang with eddie wu. intel will spend more than $33 billion to develop two chip factories in germany as part the european expansion the german chancellor calls it the biggest investment ever in

germany. and u.s. urges automakers to reduce china reliance after the visit by secretary of state failed to produce any breakthroughs. and twitter enhancing brand sa safety tools to bring back advertisers to the platform. several reports say carlos ghosn is suing the japanese automaker over the misconduct in 2018 the suit seeks $1 billion for deep damages to finances and reputation ghosn denied the conduct charge and fled to lebanon in 2019. and terraform's founder do kwon sentenced to prison over a forged passport. getting ready for the week ahead.

we hahave reports from fedex an jay powell heads to capitol hill before the testimony in front of the committee tomorrow and banking committee on thursday. and also on thursday, president biden and first lady jill biden will welcome narendra modi forte state visit. our next guest says he expects the rally to move higher as investors look ahead to the third quarter. jeff kilburg is the founder of kkm financial. he joins me now. jeff, good morning >> good morning, frank great to be here, pal. >> jeff, a down day on friday. futures under pressure this morning. what is giving you confidence this rally will continue earlier, we mentioned apollo put out a note that the fed is the driver of the rally and it gets

more hawkish, we could see a down turn in stocks. >> that is important, frank. we are going into quarter n. nine trading days left you will see under investment managers and some chasing. when you look at the marketplace, it has moved higher the nasdaq is up eight weeks in a row. it is overbought, but there is a lot of cash on the sidelines the vix is under 15. last week, we saw hawkish fed although they pressed pause on the rate hiking campaign they were insinuating two more rate hikes no one believed it i think there is a credibility issue. i think the market is walking away from rate cuts by the end of the year. the pause is here to stick and that will provide investor confidence

you will see window dressing >> what is your wex word of the day? >> my word is chase. chase the performance into q2. i know we have selling pressure and profit taking last friday. the end of the day, frank, we were tethered to 4,000, frank, in the s&p there is more room to run. it will not be a strayight line. i'm not the ultimate bull. >> i want to talk about your pick intel. intel spending $33 billion for two chip factories in germany some of that over this a.i. fever hitting chips and everything else. why is that your pick after the run up >> i think the a.i. undercurrent is important intel is a for ggotten stock you look at other names.

nvidia is a darling of a stock you look at intel, it became a takeover target under $30. nvidia, after the pop of 25%, they could have bought a small company like intel despite they were the largest chip maker for some time. intel is fascinating we are looking at fedex today. that is taking u.p.s. to the woodshed if you look longer, u.p.s. and fedex over three years are neck and neck we want to own fedex that is more of an essential company. we will wait for the earnings after the market closes. >> i want to point out, 140 times forward earnings that is not too expensive? >> it is not the trader in me, which we have to iembrace, is price. look at the price three years

ago. that puts wind in the sail people focus on percentage, not price. >> jeff kilburg, thank you for being here >> you got it. that is it for "worldwide exchange." "squawk box" is coming up next thank you fowahir tcng

u.s. markets all of us are back from the weekend. the strong week for the s&p and nasdaq above 4,400? really thawing relations with the u.s. and china although they are

building something again in cuba blinken meeting with xi and a wall street firm is cutting the growth for the world's second largest economy. and the search continues for the missing submersible on the dive to view the "titanic. it is tuesday, june 20th "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen andrew is off today. the markets were closed yesterday for the juneteenth